Solved

Match Seven of the Terms (A-K) with the Definitions Provided

Question 39

Matching

Match seven of the terms (a-k) with the definitions provided below (1-7).

Premises:

Responses:

a letter, addressed to the debtor, requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and, if incorrect, by what amount

realizable value of accounts receivable

the follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists

positive confirmation

misstatements that take place as a result of current period transactions being recorded in a subsequent period, or subsequent period transactions being recorded in the current period

timing difference in an account receivable confirmation

a listing of the balances in the accounts receivable master file at the balance sheet date broken down according to the amount of time that has passed between the date of sale and the balance sheet date

cutoff misstatements

a letter, addressed to the debtor, requesting a response only if the recipient disagrees with the amount of the stated account balance

negative confirmation

a letter, addressed to the debtor, requesting the recipient to fill in the amount of the accounts receivable balance

invoice confirmation

a reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement

blank confirmation form

accounts receivable balance-related audit objectives

aged trial balance

alternative procedures

evidence planning worksheet

Premises:

a letter, addressed to the debtor, requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and, if incorrect, by what amount

the follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists

misstatements that take place as a result of current period transactions being recorded in a subsequent period, or subsequent period transactions being recorded in the current period

a letter, addressed to the debtor, requesting a response only if the recipient disagrees with the amount of the stated account balance

a letter, addressed to the debtor, requesting the recipient to fill in the amount of the accounts receivable balance

a reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement

Responses:

realizable value of accounts receivable

positive confirmation

timing difference in an account receivable confirmation

cutoff misstatements

negative confirmation

invoice confirmation

blank confirmation form

accounts receivable balance-related audit objectives

aged trial balance

alternative procedures

evidence planning worksheet

Correct Answer:

Premises:

Responses:

realizable value of accounts receivable

positive confirmation

timing difference in an account receivable confirmation

cutoff misstatements

negative confirmation

invoice confirmation

blank confirmation form

accounts receivable balance-related audit objectives

aged trial balance

alternative procedures

evidence planning worksheet